Gujarat Narmada Valley Fertilizers & Chemicals Ltd
GNFC

Gujarat Narmada Valley Fertilizers & Chemicals Ltd (GNFC)

₹635.94.52%

Key Stats

₹616
Day's Price Range
₹647
₹314.1
52-Week Price Range
₹912
1 Month Return-30.72 %
3 Month Return10.97 %
1 Year Return58.28 %

Company Financials

  • Quarterly
  • Annual
Value in ₹ crore

Peer Comparsion

PE
Rank 2
5.7
EPS
Rank 1
₹110.04
BVPS
Rank 1
₹390.44
Dividend Yield
Rank 4
2.66%
ROE
Rank 7
12.3%
Price To Book Ratio
Rank 7
1.6
Debt To Asset
Rank 13
0.27

Company Information

Gujarat Narmada Valley Fertilizers and Chemicals Ltd GNFC is mainly engaged in the business of manufacturing and selling of Fertilizers Industrial Chemicals and providing IT related services in the areas of Information Technology. The company has set up core Chemical and Petrochemical Plants such as Methanol Formic Acid Nitric Acid Acetic Acid Toluene DiIsocyanate Aniline Ammonium Nitrate Ethyl Acetate Methyl Formate etc. The company is the only producer of Acetic Acid and one of the two producers of Formic Acid in India and has largest single stream Aniline plant in India. The company is the only manufacturer of Toluene DiIsocyanate in South East Asia and Indian sub Continent. They are having their manufacturing facilities located at Bharuch in Gujarat. n Code Solutions IT Division of the company provides several valueadded IT services and solutions covering System Integration Smart Cities Implementation eAuction eProcurement Block Chain and Education Domain eGovernance Projects Data Centres Cloud services CCTV Surveillance Systems etc. The company is carrying out the activities of information technology at Ahmedabad in Gujarat.Gujarat Narmada Valley Fertilizers Company Ltd was incorporated in the year May 10th 1976 at Bharuch in Gujarat. The company is joint sector enterprise promoted by the Government of Gujarat and the Gujarat State Fertilizer Company Ltd. In the year 1982 the company started their manufacturing and marketing operations by setting up one of the worlds largest singlestream ammoniaurea fertilizer complexes.In the year 1986 the company formally set up Research and Development centre. The centre is manned by highly qualified team of scientists and technologists. They commissioned 50 MW captive power project in two phases one in the year 1987 and the second in the year 1990. In the year 1991 they established a 142500 tpa nitro phosphate plant and a calcium ammonium nitrate plant.During the year 19992000 the company diversified into information technology by inaugurating Infotower at Ahmedabad. Also they signed MoU with business partners having technical strength for strategic alliances. During the year 200203 the company enhanced the capacity of acetic acid plant from 50000 MTA to 100000 MTA using improved technology developed by BP Chemicals UK.During the year 200304 the company incorporated ING Satcom Ltd for undertaking IT related activities including providing VSAT services via Satellite Systems Internet Gateways Internet Service Provider etc. In September 2003 the company commissioned energy efficient Isothermal Reactor which replaced the adiabatic reactor of methanolI plant.During the year 200405 the company entered into a contract with Gas Authority of India Ltd for supply of RLNG. The company commissioned the PKI project during the year. The company formed a separate division by the name nCode Solutions. In April 2004 the company completed the capacity enhancement of formic acid plant. During the year a new parallel Methyl Formate section has been successfully revamped and commissioned in March 2005 to utilise waste carbon monoxide stream available from ammonia plant. In April 2005 the company completed the revamping of hydrogen PSA unit and increased the production of hydrogen by 1200 NM3/Hr. In July 2005 the company completed and commissioned the Air Separation Unit ASU Revamp project. In October 2005 the company commissioned the AN Melt Filling Station with the additional capacity of 400 MT per day.During the year 200607 Narmada Chematur Petrochemicals Ltd NCPL the subsidiary of the company amalgamated with the company. The said amalgamation has become effective 15th February 2007. The company commissioned the Methanol Synthesis Unit on July 16 2006. The project is completed with the expenditure of Rs.27.28 crore and the Methanol capacity has increased by about 30600 MT per annum. The company during the year divested their shareholding in their wholly owned subsidiary company ING Satcom Ltd. As such ING Satcom Ltd also ceased to be the subsidiary of the company.During the year 200708 the company revamped the methanol plant to increase the production by about 175 MT per day and urea plant by which the energy saving is about 0.1 Million Kcal/MT urea. In December 2007 the company commissioned the windmill power project of 9 MW capacity which was taken under Clean Development Mechanism CDM. During the year ended 31 March 2014 GNFC achieved 101 new records on production and marketing fronts. In order to get an edge over competition a strategy has been formulated by the company during the year to excel both in production and marketing of its products. Keeping this strategy in mind concerted efforts were made to achieve highest production levels in most of the products with optimum cost. Ever highest yearly production was achieved in Ammonia Ammonia Syngas Generation Neem coated Urea Formic Acid Methyl formate Ethyl Acetate Weak Nitric Acid Concentrated Nitric Acid and Captive Power Generation. The company achieved ever highest/all time best yearly sales of Ammonium Nitrate Melt Weak Nitric Acid Concentrated Nitric Acid Ethyl Acetate Calcium Carbonate during the year. Marketing of Liquid Nitrogen was initiated during the year to create value from otherwise flared gas.The company continued its trading activities in Single Super Phosphate SSP and commenced trading of indigenously sourced DiAmmonium Phosphate DAP and Muraite of Potash MoP during the year. Selling of pesticides and cattle feed from company operated Narmada Agri Marts NAMs was commenced during the year. For the first time more than one lac MT of fertilizers were sold through NAMs increasing profitability and realization.Various technical modifications were carried out in Ammonia plant post Ammonia plant Feedstock Conversion from LSHS to Natural Gas ASGP which has avoided huge possible losses. With a view to improve overall profitability low cost gas based ammonia to the tune of 59215 MT was produced by using Synthesis Gas Generation Unit SGGU Shift gas Methanol purge gas.The use of Morocco Rock was started successfully in ANP plant for developing an alternate source of Rock phosphate thus reducing dependency on Rock supplied by M/s JPMC Jordan without adversely affecting plant operation.During the year the company has executed Fuel Supply Agreement with M/s. South Eastern Coalfield Ltd. for higher quantity of 9.12 lacs MT of coal with a view to maximize the consumption of coal in steam generation. Power trading was also resorted to which has given financial benefit.During the year commercial production of Ammonia Syngas Generation Project ASGP has been declared and the plant has operated at more than 100 capacity in the first year of its operation.Production of Calcium Ammonium Nitrate CAN was discontinued in view of the same falling within the ambit of Ammonium Nitrate Rules 2012 made effective from 11 January 2014.Although the commercial production of TDIII was declared on 24 March 2014 the stabilization of plant has not been achieved due to complex technology.nCode Solutions the IT division of the company has continued its growth and expansion in the IT Sector during the year by achieving record sales of Rs.102 crore registering an increase of 29 over the previous year based on strong performance of all its business segments. n Code implemented a unique project on behalf of Bharat Electronics Limited BEL for securing voting data in the Electronic Voting Machines EVMs using PKI Public Key Infrastructure Technology. It also implemented a citywide surveillance project for Ahmedabad Municipal Corporation one of the largest such projects in the Country and received several recognitions and awards in the field of IT. The year witnessed n Code enhancing its reach in the Indian market place through its engagement with National Informatics Centre in the roll out of several egovernance projects across India.GNFC incurred loss for the first time in the history of the company during the financial year ended 31 March 2015.Total 100 Nos. of ever highest production records were established during 201415. The company achieved a record annual production in Formic Acid Plant 208.75 Acetic Acid Plant 159.32 Ammonium Nitro phospahte Plant 144.49 and Ammonia Plant 139.61 during the year.All time best annual sales records were made in Toluene DiIsocynate AN Melt Methyl Format Ortho Toluene Diamine OTD Calcium Carbonate Methanol Imported etc. The company achieved a highest ever sale of Urea and Ammonium Nitrophosphate ANP during the year.In fertilizer business GNFC has adopted strategy of more sales of its fertilizers in its primary marketing zone consisting of Gujarat and adjoining states. Further the emphasis is laid on more sales of fertilizers to the farmers directly by increasing progressively its network of retail outlet known as Narmada khedut Sahay Kendras NKSKS. In chemical business more thrust on export has been given to ensure availability of new markets.During the financial year ended 31 March 2016 GNFC achieved highest ever export realization of Rs.212 Crore during 201516 against Rs.46 Crore in FY 201112 through export of various Industrial Chemical Products and registered a tremendous increase of 358. Highest ever trading of 57200 MTs of imported Methanol amounting to Rs.108 Crore was handled by the company during the year.The company established total 217 Nos. of highest ever production 141 Nos. and sales 76 Nos. records during 201516 surpassing previous best of total 141 Nos. of records established in 201415. During the year the company achieved highest ever production of Ammonia Urea ANP CNA Formic acid and TDI.Continuing its emphasis on product innovation the company has added Water Soluble Fertilizer and Technical Grade urea in its product portfolio during the year.During the year the company has been appointed as Fertilizer Marketing Entity FME for three years from October 2015 for handling and distribution of Urea imported by the Government of India.During the year n Code the IT division of the company has made highest ever profit of Rs. 37 Crore and highest ever turnover of Rs. 146 Crore. GNFC entered into a Joint Venture Agreement with EcoPhos s.a. Belgium and a company in the name of EcoPhos GNFC India Private Limited has been incorporated on 14 March 2016 for settingup of the said project at a total estimated cost of Rs.526 Crore with an equity investment of Rs.24 Crore for GNFC and Rs.134 Crore for EcoPhos in the ratio of 15:85 respectively. With the implementation of this project entire HCI generated as byproduct from TDIII Plant Dahej will be utilized for production of DCP resulting into improvement in the profitability of TDI business. During the financial year ended 31 March 2017 GNFC recorded highest ever Profit Before Tax PBT of Rs.715 Crore on standalone basis and higher ever repayment of term debt of Rs.780 Crore on standalone basis. The company reported higher ever single quarter PBT of Rs.314 Crore for Fourth Quarter of FY 201617. GNFC recommended of highest ever dividend of 50 for 201617.During the year the company exported various Industrial Products and achieved everhighest export turnover of Rs.361 Crore compared to Rs.212 Crore in previous year.During the year the company has achieved highest ever production in Ammonia Urea Technical Grade Urea Formic Acid Methyl Formate ANP AN Melt Section43 Nitrobenzene CPSU GT Power Generation HRSG HPSH Steam Generation Urea Bagging Total Neem Coated Technical Grade ANP Bagging TDIII/ DNT/ MTD/ OTD/ HCl/ SAC/ CO/ H2 in Dahej plant. For Lime Purification Project Joint Venture agreements were signed with M/s. Santosh Agrochem LLP SAC to establish the facility for lime purification in two phases in GNFC premises through a Joint Venture company Calciwell Chemtech Pvt. Ltd. CCPL. The project will not only solve the problems related to high stock of lime during slack season but also issues related to environment. It will also generate additional revenue for GNFC.GNFCs IT Division n Code Solutions registered ever highest sales turnover of Rs.189 Crore compared to Rs.151 crore in the previous year and contributed ever highest Profit Before Tax of Rs.51 crore during the year as compared to Rs.38 Crore in previous year registering an increase of 34 across all its business segments. n Code Solutions has bagged major prestigious orders from Ahmedabad Janmarg Ltd. Surat Municipal Corporation BRTS Maharashtra Sales Tax Department Mukhya Mantri Amrutam Yojna etc.The IT Division has maintained its leadership position in DSCs Business with Digital Signature based solutions for secured transactions and Aadhar based biometric authentication. The division has made everhighest sales in DSC and eProcurement collectively which is highest since the inception of the business.Looking to the exponential growth of the companys IT Division in terms of business and profitability since last more than three years and future growth opportunities in IT Sector and with a view to provide an operational flexibility befitting to its nature of business which would ultimately pave the way for realizing the full potential of this division and to appropriately reflect its performance GNFCs Board of Directors decided to carve out wholly owned subsidiary of GNFC for its IT business rather than functioning as a division of the company. Towards this direction a wholly owned subsidiary of the company in the name of Gujarat NCode Solutions Limited has been incorporated on 28 February 2017 for hiving off IT business to the company.During the financial year ended 31 March 2018 GNFC recorded highest ever Profit Before Tax of Rs.1162 crore as against Rs.715 crore in the previous year registering an increase of 63. The company reported highest ever Profit After Tax of Rs.790 crore as against Rs.521 Crore in the previous year registering an increase of 51. The company recorded highest ever turnover of Rs.6058 crore as against Rs.5170 crore in the previous year registering an increase of 17. The company recorded highest ever exports of Rs.629 Crore as against Rs.361 Crore in the previous year registering an increase of 74. The company registered highest ever EBITDA of Rs.1532 Crore as against Rs.1170 Crore in the previous year registering an increase of 31. It clocked highest ever EPS of Rs.50.80 as against Rs.33.54 in the previous year registering an increase of 51. GNFC recommendation of highest ever dividend of 75 as against 50 paid last year.During the year the company made highest ever prepayment of Long Term Debt of Rs.534 Crore and highest everLong Term Debt extinction of Rs.888 Crore.GNFC established total 186 new records on production and marketing fronts in FY 2018. During the year the company has achieved highest ever production in Formic Acid Ethyl Acetate Aniline TDIII and Technical Grade Urea.The company successfully launched Etendering of Methanol which was well accepted in the market. GNFC is the first company to adopt such a unique way of chemical sales through eTendering. The sale of Ammonium Nitro Phosphate ANP was highest ever at 2.23 Lac MTs. compared to 2.16 Lac MTs in the previous year.GNFCs IT Division n Code Solutions bagged major prestigious order from Vadodara Smart City Development Ltd. Another notable contribution by n Code in the Government Sector was its role in conducting reverse auction on its own eauction for Gujarat State Civil Supplies Corporation GSCSC resulting in to a massive savings of Rs.32.58 Crore to GSCSC.n Code Solutions was appointed as an Authentication User Agency AUA and eKYC User Agency KUA by Unique Identification Authority of India UIDAI for the purpose of providing Aadhaar enabled services. UIDAI had vide its interim order dated 7 June 2018 imposed financial disincentive of Rs.20532000/ including GST of Rs.3132000/ due to violation of certain provisions of Aadhaar Act 2016 and its Regulations by n Code. GNFC had submitted due explanations in this proceedings. However in order to amicably resolve the issue and close the matter GNFC had made full payment towards financial disincentive to UIDAI.Honble Prime Minister inaugurated GNFCs Neem Product facility on 8 October 2017 and also laid foundation stone for Neem Seed expelling / extraction unit at Bharuch. Neem based products launched by the company has received overwhelming response from the consumers across India.Honble Prime Minister laid foundation stone for DiCalcium Phosphate DCP project on 8 October 2017 at Bharuch. The project is being set up by EcoPhos GNFC India Pvt. Ltd. EGIL a Joint Venture Company setup with EcoPhos s.a. Belgium. The estimated cost of the said project is Rs.538 Crore with an equity investment in the ratio of 15:85 by GNFC and EcoPhos s.a. Belgium respectively.During the year GNFC made an additional investment of Rs.24.20 Crore in the equity capital of EcoPhos GNFC India Private Ltd. EGIL a Joint Venture Company by subscribing 1007300 equity shares of Rs.10/ each for cash and 23201200 equity shares of Rs.10/ each other than cash by executing an Agreement for subletting land to EGIL for settingup of DCP Project. During the year under review GNFC also made an investment of Rs.1 Lac in the equity of Gujarat n Code Solutions Ltd. a wholly owned subsidiary of the company by subscribing 10000 equity shares of Rs.10/ each as subscribers to the Memorandum of Association.During the year 2019 trading activities were continued in Muriate of Potash MoP DiAmmonium Phosphate DAP Ammonium Sulphate AS Single Super Phosphate SSP and City Compost. Total 17869 MTs of Fertilizers were sold as a part of trading activities.During the year 2019 17467 MTs of Neem seeds were collected from which 932 MTs of Neem Oil and 6972 MTs of Deoiled Neem Cake were produced. With a view to encourage organic farming the Company produced 152 MTs of Oiled Neem Cakes during FY 201819. Neem based products such as Neem soap of different variant shampoo hand wash mosquito repellent hair oil facewash etc. have received good response from the consumers.During FY 201819 the Company had made an additional investment of Rs.12 crore in the equity of Bhavnagar Energy Company Ltd.During the FY2020GNFC received 4th Rank in Environmental Green rating of Indian Fertilizer industry under its Green Rating Project GRP. The outbreak of Coronavirus COVID 19 pandemic globally and in India is causing significant disturbance and slowdown of economic activity. In India the nationwide lockdown was announced from March 25 2020 due to COVID19 pandemic. The lockdown has impacted the demand for the Companys products services especially the industrial products. The demand in overseas market is also severely impacted due to COVID19. For the year ended March 31 2020 the Companys operations were scaled down by the management in the last week of March 2020 given the demand scenario in the market. The Company was quick in restoring the operations. The company reported reports Highest Ever PBT of Rs. 450 Crore for Q4 FY21 showing healthy increase of 229 as compared to Rs. 137 Crore in Q4 FY20. The revenue increases by 29 at Rs. 1733 Crore as compared to Q4 FY20 backed by better realisation of chemical products.Revenue from Operations for the year ended 31 March 2021 has reduced marginally from Rs. 5162 Crore to Rs. 5129 Crore. However during the year improved realisation across the board in chemicals has contributed to improved bottom line. As a result PBT has gone up by 123 from Rs. 425 Crore to Rs. 948 Crore.Inspite of impact of COVID 19 on production and sale volume for practically one full month of April 2020 for Bharuch Complex and in case TDI Dahej complex till middle of June 2020 the Company has achieved 2nd Highest PBT of Rs. 948 Crore for FY 21 in the history of GNFC. Further the Board of Directors at their meeting held on 17 May 2021 have cleared the Capex plan of Rs 1250 Crore for its various product lines like Ammonia Weak Nitric Acid WNA and AN Melt.On the liquidity front due to additional allocation of budget Rs 65000 Crore by GoI the company has received highest ever subsidy of Rs 1722 Crore during FY21 which has improved the cash position of Company substantially.The company is already implementing debottlenecking in respect of Formic Acid as well as Toluene DiIsocyanate TDI in addition to brownfield expansion of Concentrated Nitric Acid CNA.The Company is implementing Formic Acid FA capacity enhancement Project to increase the capacity by 20 MTPD 6800 MT per annum. The Project will be completed by second Quarter of F.Y. 202122 and total capacity of FA would be 85 MTPD.With the increase in captive consumption of CNA for TDI market share of the Company is reducing. Hence the Company is implementing CNAIV Project with a capacity of 150 MTPD. The Project will be completed by second Quarter of F.Y. 202122. To fulfill Renewable Purchase Obligation 10 MW Solar Power Project at Charanka Solar Park P.O: Charanka Dist.: Patan is under implementation. The Project will be completed by second Quarter of F.Y. 202122. To increase the Ammonia production capacity from 1900 MTPD to 2050 MTPD by installation of Ammonia Makeup Gas Convertor Loop in existing Ammonia Synthesis Loop. This will increase Ammonia production by 50000 MT per annum. Actions have been initiated for implementation of this revamp and it is expected to be completed by third Quarter of F.Y. 202324.A large scale Neem Seed expelling / extraction unit is under implementation to produce about 2900 MT Neem oil and about 22000 MT per annum Neem cake and it is expected to be completed by second Quarter of F.Y. 202122.
OrganisationGujarat Narmada Valley Fertilizers & Chemicals Ltd
HeadquartersBharuch
IndustryFertilizers